Insiders Sold NickelX At AU$0.17, Meanwhile Stock Sits Near AU$0.021

Despite the fact that NickelX Limited's (ASX:NKL) value has dropped 19% in the last week insiders who sold AU$218k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of AU$0.17 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for NickelX

NickelX Insider Transactions Over The Last Year

Notably, that recent sale by Jason Peterson is the biggest insider sale of NickelX shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.021. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 4.30m shares worth AU$135k. On the other hand they divested 1.29m shares, for AU$218k. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At NickelX Have Sold Stock Recently

There was substantially more insider selling, than buying, of NickelX shares over the last three months. In total, insider Jason Peterson sold AU$218k worth of shares in that time. On the flip side, insiders spent AU$135k on purchasing shares (as mentioned above) . Generally this level of net selling might be considered a bit bearish.

Does NickelX Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 27% of NickelX shares, worth about AU$503k. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At NickelX Tell Us?

Unfortunately, there has been more insider selling of NickelX stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 4 warning signs for NickelX and we suggest you have a look.

But note: NickelX may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com